The Charles Schwab Stock Earnings Reports

Schwab reported a strong start to 2026 with record first-quarter revenue ($6.5B) and EPS ($1.43, +38% YoY), driven by very high client engagement and net new asset flows. Key operating metrics: 1.3M new brokerage accounts (+10% YoY), $158B core net new assets (Q1 record, March was the second-highest NNA month ever), 9.9M daily average trades (record), managed investing flows +46% and Wealth Advisory net flows +90% YoY. Client assets reached ~$11.8T. The bank lending and margin businesses expanded (bank loan balances $61B, pledged-asset lending and margin balances up), supporting net interest revenue (+16% YoY). Adjusted pretax margin was 51.4% with modest expense growth (+5% YoY) as the firm continues to invest in growth initiatives. Management emphasized innovation as a growth driver: the Forge acquisition (private/ pre-IPO access) is closed, a phased client rollout of Schwab Crypto (BTC & ETH initially, pricing ~75 bps) is imminent, structured asset-line lending and new teen investor accounts were launched, and an accelerated AI rollout (portfolio insights, generative search, AI assistants starting June) is being prioritized to scale advice, improve productivity, and create future monetization. Capital management remains balanced: adjusted Tier 1 leverage ~6.8% (in target range), $2.4B buybacks in Q1, dividend +19%, and flexibility to manage preferred redemptions. Management expects better-than-previously-shared EPS trajectory for 2026 (tracking above the $5.70–$5.80 scenario shared in January), with a refreshed financial scenario to be provided in July. Areas to watch: cash sweep economics and potential industry shifts, ETF monetization plans by year-end, the pace and monetization of AI-enabled offerings, adoption and economics of Schwab Crypto, and sensitivity of revenue-per-trade to trade-size/mix amid volatile markets.